Merck to buy Schering-Plough in $41.1B US deal

The latest massive merger deal announced in the drug sector will see Merck & Co. buy Schering-Plough Co. for about $41.1 billion US in cash and stock, the companies said Monday.

Merck is offering $10.50 US in cash plus 0.5767 of one of its shares for each share of Schering-Plough. The reverse-takeover means Schering-Plough will survive as a corporate entity, but it will take on the Merck name.

Richard Clark, Merck's chairman and chief executive officer, will head the merged company, which is seen as an industry leader in treatments for cholesterol, respiratory ailments, infectious disease and women's drugs, plus vaccines.

The union comes just weeks after Pfizer Inc. said it would buy competitor Wyeth for about $68 billion US.

Drug companies have been consolidating as they grapple with falling sales and weaker earnings.